Bill Text Versions

Current Version - 3rd Engrossment

Line numbers1.11.21.31.41.51.61.71.81.91.101.111.121.131.141.151.161.171.181.191.201.211.221.231.242.12.22.32.42.52.62.72.82.92.102.112.122.132.142.152.162.172.182.192.202.212.222.232.242.252.262.272.282.292.302.312.322.332.342.353.13.23.33.43.53.63.73.83.93.103.113.123.133.143.153.163.173.183.193.203.213.223.233.243.253.263.273.283.293.303.313.323.334.14.24.34.44.54.64.74.84.94.104.114.124.134.144.154.164.174.184.194.204.214.224.234.244.254.264.274.284.294.304.314.324.334.344.354.365.15.25.35.45.55.65.75.85.95.105.115.125.135.145.155.165.175.185.195.205.215.225.235.245.255.265.275.285.295.305.315.325.335.346.16.26.36.46.56.66.76.86.96.106.116.126.136.146.156.166.176.186.196.206.216.226.236.246.256.266.276.286.296.306.316.326.336.346.356.367.17.27.37.47.57.67.77.87.97.107.117.127.137.147.157.167.177.187.197.207.217.227.237.247.257.267.277.287.297.307.317.327.337.347.357.368.18.28.38.48.58.68.78.88.98.108.118.128.138.148.158.168.178.188.198.208.218.228.238.248.258.268.278.288.298.308.318.328.338.348.359.19.29.39.49.59.69.79.89.99.109.119.129.139.149.159.169.179.189.199.209.219.229.239.249.259.269.279.289.299.309.319.329.339.349.359.3610.110.210.310.410.510.610.710.810.910.1010.1110.1210.1310.1410.1510.1610.1710.1810.1910.2010.2110.2210.2310.2410.2510.2610.2710.2810.2910.3010.3110.3210.3310.3410.3511.111.211.311.411.511.611.711.811.911.1011.1111.1211.1311.1411.1511.1611.1711.1811.1911.2011.2111.2211.2311.2411.2511.2611.2711.2811.2911.3011.3111.3211.3311.3411.3512.112.212.312.412.512.612.712.812.912.1012.1112.1212.1312.1412.1512.1612.1712.1812.1912.2012.2112.2212.2312.2412.2512.2612.2712.2812.2912.3012.3112.3212.3312.3412.3512.3613.113.213.313.413.513.613.713.813.913.1013.1113.1213.1313.1413.1513.1613.1713.1813.1913.2013.2113.2213.2313.2413.2513.2613.2713.2813.2913.3013.3113.3213.3313.3413.3514.114.214.314.414.514.614.714.814.914.1014.1114.1214.1314.1414.1514.1614.1714.1814.1914.2014.2114.2214.2314.2414.2514.2614.2714.2814.2914.3014.3114.3214.3314.3414.3514.3615.115.215.315.415.515.615.715.815.915.1015.1115.1215.1315.1415.1515.1615.1715.1815.1915.2015.2115.2215.2315.2415.2515.2615.2715.2815.2915.3015.3115.3215.3315.3415.3515.3616.116.216.316.416.516.616.716.816.916.1016.1116.1216.1316.1416.1516.1616.1716.1816.1916.2016.2116.2216.2316.2416.2516.2616.2716.2816.2916.3016.3116.3216.3316.3417.117.217.317.417.517.617.717.817.917.1017.1117.1217.1317.1417.1517.1617.1717.1817.1917.2017.2117.2217.2317.2417.2517.2617.2717.2817.2917.3017.3117.3217.3317.3418.118.218.318.418.518.618.718.818.918.1018.1118.1218.1318.1418.1518.1618.1718.1818.1918.2018.2118.2218.2318.2418.2518.2618.2718.2818.2918.3018.3118.3218.3318.3418.3518.3619.119.219.319.419.519.619.719.819.919.1019.1119.1219.1319.1419.1519.1619.1719.1819.1919.2019.2119.2219.2319.2419.2519.2619.2719.2819.2919.3019.3119.3219.3319.3419.3519.3620.120.220.320.420.520.620.720.820.920.1020.1120.1220.1320.1420.1520.1620.1720.1820.1920.2020.2120.2220.2320.2420.2520.2620.2720.2820.2920.3020.3120.3220.3320.3420.3521.121.221.321.421.521.621.721.821.921.1021.1121.1221.1321.1421.1521.1621.1721.1821.1921.2021.2121.2221.2321.2421.2521.2621.2721.2821.2921.3021.3121.3221.3322.122.222.322.422.522.622.722.822.922.1022.1122.1222.1322.1422.1522.1622.1722.1822.1922.2022.2122.2222.2322.2422.2522.26

Section 1.

Minnesota Statutes 2014, section 15.01, is amended to read:

15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the Department of Administration; the Department of Agriculture; the Department of Commerce; the Department of Corrections; the Department of Education; the Department of Employment and Economic Development; the Department of Health; the Department of Human Rights; the Department of Labor and Industry; the Department of Management and Budget; the Department of Military Affairs; the Department of Natural Resources; the Department of Public Safety; the Department of Human Services; the Department of Revenue; the Department of Transportation; the Department of Veterans Affairs; new text beginthe Department of MNsure; new text endand their successor departments.

Sec. 2.

Subd. 2.

Group I salary limits.

The salary for a position listed in this subdivision shall not exceed 133 percent of the salary of the governor. This limit must be adjusted annually on January 1. The new limit must equal the limit for the prior year increased by the percentage increase, if any, in the Consumer Price Index for all urban consumers from October of the second prior year to October of the immediately prior year. The commissioner of management and budget must publish the limit on the department's Web site. This subdivision applies to the following positions:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of health;

Commissioner, Minnesota Office of Higher Education;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

Commissioner of labor and industry;

Commissioner of management and budget;

new text beginCommissioner of MNsure;new text end

Commissioner of natural resources;

Commissioner, Pollution Control Agency;

Executive director, Public Employees Retirement Association;

Commissioner of public safety;

Commissioner of revenue;

Executive director, State Retirement System;

Executive director, Teachers Retirement Association;

Commissioner of employment and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Sec. 3.

Subd. 2.

Approval.

(a) The health plan form shall not be issued, nor shall any application, rider, endorsement, or rate be used in connection with it, until the expiration of 60 days after it has been filed unless the commissioner approves it before that time.

(b) Notwithstanding paragraph (a), a rate filed with respect to a policy of accident and sickness insurance as defined in section 62A.01 by an insurer licensed under chapter 60A, may be used on or after the date of filing with the commissioner. Rates that are not approved or disapproved within the 60-day time period are deemed approved. This paragraph does not apply to Medicare-related coverage as defined in section 62A.3099, subdivision 17.

new text begin(c) For coverage to begin on or after January 1, 2016, and each January 1 thereafter, health plans in the individual and small group markets that are not grandfathered plans to be offered outside MNsure and qualified health plans to be offered inside MNsure must receive rate approval from the commissioner no later than 30 days prior to the beginning of the annual open enrollment period for MNsure. Premium rates for all carriers in the applicable market for the next calendar year must be made available to the public by the commissioner only after all rates for the applicable market are final and approved. Final and approved rates must be publicly released at a uniform time for all individual and small group health plans that are not grandfathered plans to be offered outside MNsure and qualified health plans to be offered inside MNsure, and no later than 30 days prior to the beginning of the annual open enrollment period for MNsure.new text end

Sec. 5.

Subd. 11.

Qualified health plan.

"Qualified health plan" means a health plan that meets the definition in section 1301(a) of the Affordable Care Act, Public Law 111-148, and has been certified by the deleted text beginboarddeleted text endnew text begin commissionernew text end in accordance with section 62V.05, subdivision 5, to be offered through MNsure.

Sec. 6.

Minnesota Statutes 2014, section 62V.03, is amended to read:

62V.03 MNSURE; ESTABLISHMENT.

Subdivision 1.

Creation.

MNsure is created as a deleted text beginboard under section 15.012, paragraph (a),deleted text endnew text begin department of the state government under section 15.01new text end to:

(2) facilitate and simplify the comparison, choice, enrollment, and purchase of health plans for individuals purchasing in the individual market through MNsure and for employees and employers purchasing in the small group market through MNsure;

(3) assist small employers with access to small business health insurance tax credits and to assist individuals with access to public health care programs, premium assistance tax credits and cost-sharing reductions, and certificates of exemption from individual responsibility requirements;

(4) facilitate the integration and transition of individuals between public health care programs and health plans in the individual or group market and develop processes that, to the maximum extent possible, provide for continuous coverage; and

(5) establish and modify as necessary a name and brand for MNsure based on market studies that show maximum effectiveness in attracting the uninsured and motivating them to take action.

Subd. 2.

Application of other law.

(a) MNsure deleted text beginmust be revieweddeleted text endnew text begin is subject to auditnew text end by the legislative auditor deleted text beginunder sectiondeleted text enddeleted text begin3.971deleted text end. deleted text beginThe legislative auditor shall audit the books, accounts, and affairs of MNsure once each year or less frequently as the legislative auditor's funds and personnel permit. Upon the audit of the financial accounts and affairs of MNsure, MNsure is liable to the state for the total cost and expenses of the audit, including the salaries paid to the examiners while actually engaged in making the examination. The legislative auditor may bill MNsure either monthly or at the completion of the audit. All collections received for the audits must be deposited in the general fund and are appropriated to the legislative auditor. Pursuant to section 3.97, subdivision 3a, the Legislative Audit Commission is requested to direct the legislative auditor to report by March 1, 2014, to the legislature on any duplication of services that occurs within state government as a result of the creation of MNsure. The legislative auditor may make recommendations on consolidating or eliminating any services deemed duplicative. The board shall reimburse the legislative auditor for any costs incurred in the creation of this report.deleted text end

deleted text begin(b) Board members of MNsure are subject to sections 10A.07 and 10A.09. Board members and the personnel of MNsure are subject to section 10A.071.deleted text end

deleted text begin(c) All meetings of the board shall comply with the open meeting law in chapter 13D, except that:deleted text end

deleted text begin(1) meetings, or portions of meetings, regarding compensation negotiations with the director or managerial staff may be closed in the same manner and according to the same procedures identified in section 13D.03;deleted text end

deleted text begin(2) meetings regarding contract negotiation strategy may be closed in the same manner and according to the same procedures identified in section 13D.05, subdivision 3, paragraph (c); anddeleted text end

deleted text begin(3) meetings, or portions of meetings, regarding not public data described in section 62V.06, subdivision 3, and regarding trade secret information as defined in section 13.37, subdivision 1, paragraph (b), are closed to the public, but must otherwise comply with the procedures identified in chapter 13D.deleted text end

deleted text begin(2)deleted text end chapters 16B and 16C, with the exception of sections 16C.08, subdivision 2, paragraph (b), clauses (1) to (8); 16C.086; 16C.09, paragraph (a), clauses (1) and (3), paragraph (b), and paragraph (c); and section 16C.16. However, deleted text beginMNsuredeleted text endnew text begin the commissionernew text end, in consultation with the commissioner of administration, shall implement policies and procedures to establish an open and competitive procurement process for MNsure that, to the extent practicable, conforms to the principles and procedures contained in chapters 16B and 16C. In addition, deleted text beginMNsuredeleted text endnew text begin the commissionernew text end may enter into an agreement with the commissioner of administration for other services.

deleted text begin(e) The board anddeleted text endnew text begin(c) new text endThe Web site deleted text beginaredeleted text endnew text begin isnew text end exempt from chapter 60K. Any employee of MNsure who sells, solicits, or negotiates insurance to individuals or small employers must be licensed as an insurance producer under chapter 60K.

deleted text begin(h) A MNsure decision that requires a vote of the board, other than a decision that applies only to hiring of employees or other internal management of MNsure, is an "administrative action" under section 10A.01, subdivision 2.deleted text end

Subd. 3.

Continued operation of a private marketplace.

(a) Nothing in this chapter shall be construed to prohibit: (1) a health carrier from offering outside of MNsure a health plan to a qualified individual or qualified employer; and (2) a qualified individual from enrolling in, or a qualified employer from selecting for its employees, a health plan offered outside of MNsure.

(b) Nothing in this chapter shall be construed to restrict the choice of a qualified individual to enroll or not enroll in a qualified health plan or to participate in MNsure. Nothing in this chapter shall be construed to compel an individual to enroll in a qualified health plan or to participate in MNsure.

(c) For purposes of this subdivision, "qualified individual" and "qualified employer" have the meanings given in section 1312 of the Affordable Care Act, Public Law 111-148, and further defined through amendments to the act and regulations issued under the act.

Sec. 7.

Minnesota Statutes 2014, section 62V.04, is amended to read:

62V.04 GOVERNANCE.

deleted text beginSubdivision 1.deleted text end

deleted text beginBoard.deleted text end

deleted text beginMNsure is governed by a board of directors with seven members.deleted text end

deleted text beginSubd. 2.deleted text end

deleted text beginAppointment.deleted text end

deleted text begin(a) Board membership of MNsure consists of the following:deleted text end

deleted text begin(1) three members appointed by the governor with the advice and consent of both the senate and the house of representatives acting separately in accordance with paragraph (d), with one member representing the interests of individual consumers eligible for individual market coverage, one member representing individual consumers eligible for public health care program coverage, and one member representing small employers. Members are appointed to serve four-year terms following the initial staggered-term lot determination;deleted text end

deleted text begin(2) three members appointed by the governor with the advice and consent of both the senate and the house of representatives acting separately in accordance with paragraph (d) who have demonstrated expertise, leadership, and innovation in the following areas: one member representing the areas of health administration, health care finance, health plan purchasing, and health care delivery systems; one member representing the areas of public health, health disparities, public health care programs, and the uninsured; and one member representing health policy issues related to the small group and individual markets. Members are appointed to serve four-year terms following the initial staggered-term lot determination; anddeleted text end

deleted text begin(3) the commissioner of human services or a designee.deleted text end

deleted text begin(b) Section 15.0597 shall apply to all appointments, except for the commissioner.deleted text end

deleted text begin(c) The governor shall make appointments to the board that are consistent with federal law and regulations regarding its composition and structure. All board members appointed by the governor must be legal residents of Minnesota.deleted text end

deleted text begin(d) Upon appointment by the governor, a board member shall exercise duties of office immediately. If both the house of representatives and the senate vote not to confirm an appointment, the appointment terminates on the day following the vote not to confirm in the second body to vote.deleted text end

deleted text begin(e) Initial appointments shall be made by April 30, 2013.deleted text end

deleted text begin(f) One of the six members appointed under paragraph (a), clause (1) or (2), must have experience in representing the needs of vulnerable populations and persons with disabilities.deleted text end

deleted text begin(g) Membership on the board must include representation from outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2.deleted text end

deleted text beginSubd. 3.deleted text end

deleted text beginTerms.deleted text end

deleted text begin(a) Board members may serve no more than two consecutive terms, except for the commissioner or the commissioner's designee, who shall serve until replaced by the governor.deleted text end

deleted text begin(b) A board member may resign at any time by giving written notice to the board.deleted text end

deleted text begin(c) The appointed members under subdivision 2, paragraph (a), clauses (1) and (2), shall have an initial term of two, three, or four years, determined by lot by the secretary of state.deleted text end

deleted text beginSubd. 4.deleted text end

deleted text beginConflicts of interest.deleted text end

deleted text begin(a) Within one year prior to or at any time during their appointed term, board members appointed under subdivision 2, paragraph (a), clauses (1) and (2), shall not be employed by, be a member of the board of directors of, or otherwise be a representative of a health carrier, institutional health care provider or other entity providing health care, navigator, insurance producer, or other entity in the business of selling items or services of significant value to or through MNsure. For purposes of this paragraph, "health care provider or entity" does not include an academic institution.deleted text end

deleted text begin(b) Board members must recuse themselves from discussion of and voting on an official matter if the board member has a conflict of interest. A conflict of interest means an association including a financial or personal association that has the potential to bias or have the appearance of biasing a board member's decisions in matters related to MNsure or the conduct of activities under this chapter.deleted text end

deleted text begin(c) No board member shall have a spouse who is an executive of a health carrier.deleted text end

deleted text begin(d) No member of the board may currently serve as a lobbyist, as defined under section 10A.01, subdivision 21.deleted text end

deleted text beginSubd. 5.deleted text end

deleted text begin(a) The governor shall designate as acting chair one of the appointees described in subdivision 2.deleted text end

deleted text begin(b) The board shall hold its first meeting within 60 days of enactment.deleted text end

deleted text begin(c) The board shall elect a chair to replace the acting chair at the first meeting.deleted text end

deleted text beginSubd. 6.deleted text end

deleted text beginChair.deleted text end

deleted text beginThe board shall have a chair, elected by a majority of members. The chair shall serve for one year.deleted text end

deleted text beginSubd. 7.deleted text end

deleted text beginOfficers.deleted text end

deleted text beginThe members of the board shall elect officers by a majority of members. The officers shall serve for one year.deleted text end

deleted text beginSubd. 8.deleted text end

deleted text beginVacancies.deleted text end

deleted text beginIf a vacancy occurs, the governor shall appoint a new member within 90 days, and the newly appointed member shall be subject to the same confirmation process described in subdivision 2.deleted text end

deleted text beginSubd. 9.deleted text end

deleted text beginRemoval.deleted text end

deleted text begin(a) A board member may be removed by the appointing authority and a majority vote of the board following notice and hearing before the board. For purposes of this subdivision, the appointing authority or a designee of the appointing authority shall be a voting member of the board for purposes of constituting a quorum.deleted text end

deleted text begin(b) A conflict of interest as defined in subdivision 4, shall be cause for removal from the board.deleted text end

deleted text beginSubd. 10.deleted text end

deleted text beginMeetings.deleted text end

deleted text beginSubd. 11.deleted text end

deleted text beginQuorum.deleted text end

deleted text beginA majority of the members of the board constitutes a quorum, and the affirmative vote of a majority of members of the board is necessary and sufficient for action taken by the board.deleted text end

deleted text beginSubd. 12.deleted text end

deleted text beginCompensation.deleted text end

deleted text begin(a) The board members shall be paid a salary not to exceed the salary limits established under section 15A.0815, subdivision 4. The salary for board members shall be set in accordance with this subdivision and section 15A.0815, subdivision 5. This paragraph expires December 31, 2015.deleted text end

deleted text begin(b) Beginning January 1, 2016, the board members may be compensated in accordance with section 15.0575.deleted text end

(c) Section 15.0597 shall not apply to any advisory committee established by the deleted text beginboarddeleted text endnew text begin commissionernew text end under this subdivision.

(d) The deleted text beginboarddeleted text endnew text begin commissionernew text end may provide compensation and expense reimbursement under section 15.059, subdivision 3, to members of the advisory committees.

new text begin(e) The advisory committees established under this subdivision are subject to the open meeting law in chapter 13D.new text end

Sec. 8.

Minnesota Statutes 2014, section 62V.05, is amended to read:

62V.05 RESPONSIBILITIES AND POWERS OF MNSURE.

Subdivision 1.

General.

(a) The deleted text beginboarddeleted text endnew text begin commissionernew text end shall operate MNsure according to this chapter and applicable state and federal law.

(b) The deleted text beginboarddeleted text endnew text begin commissionernew text end has the power to:

(1) deleted text beginemploy personnel and delegate administrative, operational, and other responsibilities to the director and other personnel as deemed appropriate by the board. This authority is subject to chapters 43A and 179A. The director and managerial staff of MNsure shall serve in the unclassified service and shall be governed by a compensation plan prepared by the board, submitted to the commissioner of management and budget for review and comment within 14 days of its receipt, and approved by the Legislative Coordinating Commission and the legislature under section 3.855, except that section 15A.0815, subdivision 5, paragraph (e), shall not apply;deleted text end

deleted text begin(2) establish the budget of MNsure;deleted text end

deleted text begin(3)deleted text end seek and accept money, grants, loans, donations, materials, services, or advertising revenue from government agencies, philanthropic organizations, and public and private sources to fund the operation of MNsure. No health carrier or insurance producer shall advertise on MNsure;

deleted text begin(4)deleted text endnew text begin (2)new text end contract for the receipt and provision of goods and services;

deleted text begin(5)deleted text endnew text begin (3)new text end enter into information-sharing agreements with federal and state agencies and other entities, provided the agreements include adequate protections with respect to the confidentiality and integrity of the information to be shared, and comply with all applicable state and federal laws, regulations, and rules, including the requirements of section 62V.06; and

deleted text begin(6)deleted text endnew text begin (4)new text end exercise all powers reasonably necessary to implement and administer the requirements of this chapter and the Affordable Care Act, Public Law 111-148.

(c) The deleted text beginboarddeleted text endnew text begin commissionernew text end shall establish policies and procedures to gather public comment and provide public notice in the State Register.

deleted text begin(d) Within 180 days of enactment, the board shall establish bylaws, policies, and procedures governing the operations of MNsure in accordance with this chapter.deleted text end

Subd. 2.

Operations funding.

(a) Prior to January 1, 2015, MNsure shall retain or collect up to 1.5 percent of total premiums for individual and small group market health plans and dental plans sold through MNsure to fund the cash reserves of MNsure, but the amount collected shall not exceed a dollar amount equal to 25 percent of the funds collected under section 62E.11, subdivision 6, for calendar year 2012.

(b) Beginning January 1, 2015, MNsure shall retain or collect up to 3.5 percent of total premiums for individual and small group market health plans and dental plans sold through MNsure to fund the operations of MNsure, but the amount collected shall not exceed a dollar amount equal to 50 percent of the funds collected under section 62E.11, subdivision 6, for calendar year 2012.

(c) Beginning January 1, 2016, MNsure shall retain or collect up to 3.5 percent of total premiums for individual and small group market health plans and dental plans sold through MNsure to fund the operations of MNsure, but the amount collected may never exceed a dollar amount greater than 100 percent of the funds collected under section 62E.11, subdivision 6, for calendar year 2012.

(d) For fiscal years 2014 and 2015, the commissioner of management and budget is authorized to provide cash flow assistance of up to $20,000,000 from the special revenue fund or the statutory general fund under section 16A.671, subdivision 3, paragraph (a), to MNsure. Any funds provided under this paragraph shall be repaid, with interest, by June 30, 2015.

(e) Funding for the operations of MNsure shall cover any compensation provided to navigators participating in the navigator program.

Subd. 3.

Insurance producers.

(a) deleted text begin By April 30, 2013,deleted text end The deleted text beginboarddeleted text endnew text begin commissionernew text end, in consultation with the commissioner of commerce, shall establish certification requirements that must be met by insurance producers in order to assist individuals and small employers with purchasing coverage through MNsure. deleted text beginPrior to January 1, 2015, the board may amend the requirements, only if necessary, due to a change in federal rules.deleted text end

(b) Certification requirements shall not exceed the requirements established under Code of Federal Regulations, title 45, part 155.220. Certification shall include training on health plans available through MNsure, available tax credits and cost-sharing arrangements, compliance with privacy and security standards, eligibility verification processes, online enrollment tools, and basic information on available public health care programs. Training required for certification under this subdivision shall qualify for continuing education requirements for insurance producers required under chapter 60K, and must comply with course approval requirements under chapter 45.

(c) Producer compensation shall be established by health carriers that provide health plans through MNsure. The structure of compensation to insurance producers must be similar for health plans sold through MNsure and outside MNsure.

(d) Any insurance producer compensation structure established by a health carrier for the small group market must include compensation for defined contribution plans that involve multiple health carriers. The compensation offered must be commensurate with other small group market defined health plans.

(e) Any insurance producer assisting an individual or small employer with purchasing coverage through MNsure must disclose, orally and in writing, to the individual or small employer at the time of the first solicitation with the prospective purchaser the following:

(1) the health carriers and qualified health plans offered through MNsure that the producer is authorized to sell, and that the producer may not be authorized to sell all the qualified health plans offered through MNsure;

(2) that the producer may be receiving compensation from a health carrier for enrolling the individual or small employer into a particular health plan; and

(3) that information on all qualified health plans offered through MNsure is available through the MNsure Web site.

For purposes of this paragraph, "solicitation" means any contact by a producer, or any person acting on behalf of a producer made for the purpose of selling or attempting to sell coverage through MNsure. If the first solicitation is made by telephone, the disclosures required under this paragraph need not be made in writing, but the fact that disclosure has been made must be acknowledged on the application.

(f) Beginning January 15, 2015, each health carrier that offers or sells qualified health plans through MNsure shall report in writing to the deleted text beginboarddeleted text endnew text begin commissionernew text end and the commissioner of commerce the compensation and other incentives it offers or provides to insurance producers with regard to each type of health plan the health carrier offers or sells both inside and outside of MNsure. Each health carrier shall submit a report annually and upon any change to the compensation or other incentives offered or provided to insurance producers.

(g) Nothing in this chapter shall prohibit an insurance producer from offering professional advice and recommendations to a small group purchaser based upon information provided to the producer.

(h) An insurance producer that offers health plans in the small group market shall notify each small group purchaser of which group health plans qualify for Internal Revenue Service approved section 125 tax benefits. The insurance producer shall also notify small group purchasers of state law provisions that benefit small group plans when the employer agrees to pay 50 percent or more of its employees' premium. Individuals who are eligible for cost-effective medical assistance will count toward the 75 percent participation requirement in section 62L.03, subdivision 3.

(i) Nothing in this subdivision shall be construed to limit the licensure requirements or regulatory functions of the commissioner of commerce under chapter 60K.

new text begin(j) The commissioners of human services and MNsure, upon federal approval, shall establish an insurance producer incentive program to compensate insurance producers for providing application enrollment assistance for public health care programs. The program must include certification training standards for insurance producers seeking compensation under the incentive program. The standards must meet the training modules specified under Minnesota Rules, part 7700.0050, subpart 1. The amount of compensation to be paid to an insurance producer under this program is established in section 256.962, subdivision 5.new text end

(b) deleted text beginUntil the implementation of the policies and procedures described in paragraph (a), the following shall be in effect:deleted text end

deleted text begin(1) the navigator program shall be met by section 256.962;deleted text end

deleted text begin(2) entities eligible to be navigators, including entities defined in Code of Federal Regulations, title 45, part 155.210 (c)(2), may serve as in-person assisters;deleted text end

deleted text begin(3)deleted text end The deleted text beginboarddeleted text endnew text begin commissionernew text end shall establish requirements and compensation for the navigator program and the in-person assister program by April 30, 2013. new text beginEntities eligible to be navigators, including entities defined in Code of Federal Regulations, title 45, part 155.210 (c)(2), may serve as in-person assisters. new text endCompensation for navigators and in-person assisters must take into account any other compensation received by the navigator or in-person assister for conducting the same or similar servicesdeleted text begin; anddeleted text endnew text begin.new text end

deleted text begin(d)deleted text endnew text begin (e)new text end The navigator program and in-person assister program must meet the requirements of section 1311(i) of the Affordable Care Act, Public Law 111-148. In establishing training standards for the navigators and in-person assisters, the deleted text beginboarddeleted text endnew text begincommissionernew text end must ensure that all entities and individuals carrying out navigator and in-person assister functions have training in the needs of underserved and vulnerable populations; eligibility and enrollment rules and procedures; the range of available public health care programs and qualified health plan options offered through MNsure; and privacy and security standards. deleted text beginFor calendar year 2014, the commissioner of human services shall ensure that the navigator program under section 256.962 provides application assistance for both qualified health plans offered through MNsure and public health care programs.deleted text end

deleted text begin(e)deleted text endnew text begin (f)new text end The deleted text beginboarddeleted text endnew text begin commissionernew text end must ensure that any information provided by navigators, in-person assisters, the call center, or other customer assistance portals be accessible to persons with disabilities and that information provided on public health care programs include information on other coverage options available to persons with disabilities.

Subd. 5.

Health carrier and health plan requirements; participation.

deleted text begin(a) Beginning January 1, 2015, the board may establish certification requirements for health carriers and health plans to be offered through MNsure that satisfy federal requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148.deleted text end

deleted text begin(b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory requirements that:deleted text end

deleted text begin(1) apply uniformly to all health carriers and health plans in the individual market;deleted text end

deleted text begin(2) apply uniformly to all health carriers and health plans in the small group market; anddeleted text end

(2) the deleted text beginboarddeleted text endnew text begin commissionernew text end determines that making the health plan available through MNsure is in the interest of qualified individuals and qualified employers;

(3) the health carrier applying to offer the health plan through MNsure also applies to offer health plans at each actuarial value level and service area that the health carrier currently offers in the individual and small group markets; and

(4) the health carrier does not apply to offer health plans in the individual and small group markets through MNsure under a separate license of a parent organization or holding company under section 60D.15, that is different from what the health carrier offers in the individual and small group markets outside MNsure.

deleted text begin(f) For 2014, the board shall not have the power to select health carriers and health plans for participation in MNsure. The board shall permit all health plans that meet the certification requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148, to be offered through MNsure.deleted text end

deleted text begin(g)deleted text endnew text begin (d)new text end Under this subdivision, the deleted text beginboarddeleted text endnew text begin commissionernew text end shall have the power to verify that health carriers and health plans are properly certified to be eligible for participation in MNsure.

deleted text begin(i)deleted text endnew text begin (f)new text end For qualified health plans offered through MNsure beginning January 1, 2015, health carriers must use the most current addendum for Indian health care providers approved by the Centers for Medicare and Medicaid Services and the tribes as part of their contracts with Indian health care providers. MNsure shall comply with all future changes in federal law with regard to health coverage for the tribes.

Subd. 6.

Appeals.

(a) The deleted text beginboarddeleted text endnew text begin commissionernew text end may conduct hearings, appoint hearing officers, and recommend final orders related to appeals of any MNsure determinations, except for those determinations identified in paragraph (d). An appeal by a health carrier regarding a specific certification or selection determination made by deleted text beginMNsuredeleted text endnew text beginthe commissionernew text end under subdivision 5 must be conducted as a contested case proceeding under chapter 14, with the report or order of the administrative law judge constituting the final decision in the case, subject to judicial review under sections 14.63 to 14.69. For other appeals, the deleted text beginboarddeleted text endnew text begin commissionernew text end shall establish hearing processes which provide for a reasonable opportunity to be heard and timely resolution of the appeal and which are consistent with the requirements of federal law and guidance. An appealing party may be represented by legal counsel at these hearings, but this is not a requirement.

Subd. 7.

Agreements; consultation.

deleted text begin(1) establish and maintain an agreement with the chief information officer of the Office of MN.IT Services for information technology services that ensures coordination with public health care programs. The board may establish and maintain agreements with the chief information officer of the Office of MN.IT Services for other information technology services, including an agreement that would permit MNsure to administer eligibility for additional health care and public assistance programs under the authority of the commissioner of human services;deleted text end

deleted text begin(2)deleted text endnew text begin (1)new text end establish and maintain an agreement with the commissioner of human services for cost allocation and services regarding eligibility determinations and enrollment for public health care programs that use a modified adjusted gross income standard to determine program eligibility. The deleted text beginboarddeleted text endnew text begin commissionernew text end may establish and maintain an agreement with the commissioner of human services for other services;

deleted text begin(3)deleted text endnew text begin (2)new text end establish and maintain an agreement with the commissioners of commerce and health for services regarding enforcement of MNsure certification requirements for health plans and dental plans offered through MNsure. The deleted text beginboarddeleted text endnew text begin commissionernew text end may establish and maintain agreements with the commissioners of commerce and health for other services; and

new text begin(b) The commissioner shall consult with the Office of MN.IT Services and the commissioner of human services on all decisions that relate to information technology services to permit MNsure the ability to administer eligibility for public health care programs and ensure coordination and compatibility between public health care programs and qualified health plans.new text end

deleted text begin(d)deleted text endnew text begin (e)new text end Beginning March 15, deleted text begin2014deleted text endnew text begin 2016new text end, and each March 15 thereafter, the deleted text beginboarddeleted text endnew text begincommissionernew text end shall submit a report to the chairs and ranking minority members of the committees in the senate and house of representatives with primary jurisdiction over commerce, health, and human services on all the agreements entered into with the chief information officer of the Office of MN.IT Services, or the commissioners of human services, health, or commerce in accordance with this subdivision. The report shall include the agency in which the agreement is with; the time period of the agreement; the purpose of the agreement; and a summary of the terms of the agreement. A copy of the agreement must be submitted to the extent practicable.

Subd. 8.

Rulemaking.

deleted text begin(a) If the board's policies, procedures, or other statements are rules, as defined in section 14.02, subdivision 4, the requirements in either paragraph (b) or (c) apply, as applicable.deleted text end

deleted text begin(b) Effective upon enactment until January 1, 2015:deleted text end

deleted text begin(1) the board shall publish notice of proposed rules in the State Register after complying with section 14.07, subdivision 2;deleted text end

deleted text begin(2) interested parties have 21 days to comment on the proposed rules. The board must consider comments it receives. After the board has considered all comments and has complied with section 14.07, subdivision 2, the board shall publish notice of the final rule in the State Register;deleted text end

deleted text begin(3) if the adopted rules are the same as the proposed rules, the notice shall state that the rules have been adopted as proposed and shall cite the prior publication. If the adopted rules differ from the proposed rules, the portions of the adopted rules that differ from the proposed rules shall be included in the notice of adoption, together with a citation to the prior State Register that contained the notice of the proposed rules; anddeleted text end

deleted text begin(4) rules published in the State Register before January 1, 2014, take effect upon publication of the notice. Rules published in the State Register on and after January 1, 2014, take effect 30 days after publication of the notice.deleted text end

deleted text begin(c) Beginning January 1, 2015,deleted text end The deleted text beginboarddeleted text endnew text begin commissionernew text end may adopt rules to implement any provisions in this chapter using the expedited rulemaking process in section 14.389.

deleted text begin(d) The notice of proposed rules required in paragraph (b) must provide information as to where the public may obtain a copy of the rules. The board shall post the proposed rules on the MNsure Web site at the same time the notice is published in the State Register.deleted text end

Subd. 9.

Dental plans.

(a) The provisions of this section that apply to health plans shall apply to dental plans offered as stand-alone dental plans through MNsure, to the extent practicable.

(b) A stand-alone dental plan offered through MNsure must meet all certification requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148, that are applicable to health plans, except for certification requirements that cannot be met because the dental plan only covers dental benefits.

deleted text begin(b) Nothing in this subdivision shall prevent MNsure from providing insurance for its employees.deleted text end

new text beginSubd. 11.new text end

new text beginProhibition on other product lines.new text end

new text begin(a) MNsure is prohibited, either directly or through another agency or business partner, from certifying, selecting, or offering products and policies of coverage other than qualified health plans or dental plans.new text end

new text begin(b) This subdivision expires July 1, 2018.new text end

Sec. 9.

Minnesota Statutes 2014, section 62V.06, is amended to read:

62V.06 DATA PRACTICES.

Subdivision 1.

Applicability.

MNsure is deleted text begina state agency for purposes of the Minnesota Government Data Practices Act and isdeleted text end subject to all provisions of chapter 13, in addition to the requirements contained in this section.

Subd. 2.

Definitions.

As used in this section:

(1) "individual" means an individual according to section 13.02, subdivision 8, but does not include a vendor of services; and

(2) "participating" means that an individual, employee, or employer is seeking, or has sought an eligibility determination, enrollment processing, or premium processing through MNsure.

Subd. 3.

General data classifications.

The following data collected, created, or maintained by MNsure are classified as private data on individuals, as defined in section 13.02, subdivision 12, or nonpublic data, as defined in section 13.02, subdivision 9:

(1) data on any individual participating in MNsure;

(2) data on any individuals participating in MNsure as employees of an employer participating in MNsure; and

(3) data on employers participating in MNsure.

Subd. 4.

Application and certification data.

(a) Data submitted by an insurance producer in an application for certification to sell a health plan through MNsure, or submitted by an applicant seeking permission or a commission to act as a navigator or in-person assister, are classified as follows:

(1) at the time the application is submitted, all data contained in the application are private data, as defined in section 13.02, subdivision 12, or nonpublic data as defined in section 13.02, subdivision 9, except that the name of the applicant is public; and

(2) upon a final determination related to the application for certification by MNsure, all data contained in the application are public, with the exception of trade secret data as defined in section 13.37.

(b) Data created or maintained by a government entity as part of the evaluation of an application are protected nonpublic data, as defined in section 13.02, subdivision 13, until a final determination as to certification is made and all rights of appeal have been exhausted. Upon a final determination and exhaustion of all rights of appeal, these data are public, with the exception of trade secret data as defined in section 13.37 and data subject to attorney-client privilege or other protection as provided in section 13.393.

(c) If an application is denied, the public data must include the criteria used by the deleted text beginboarddeleted text endnew text begin commissionernew text end to evaluate the application and the specific reasons for the denial, and these data must be published on the MNsure Web site.

(3) according to a state or federal law specifically authorizing access to the data;

(4) with other state or federal agencies, only to the extent necessary to verify the identity of, determine the eligibility of, process premiums for, process enrollment of, or investigate fraud related to an individual, employer, or employee participating in MNsure, provided that deleted text beginMNsuredeleted text endnew text begin the commissionernew text end must enter into a data-sharing agreement with the agency prior to sharing data under this clause; and

(5) with a nongovernmental person or entity, only to the extent necessary to verify the identity of, determine the eligibility of, process premiums for, process enrollment of, or investigate fraud related to an individual, employer, or employee participating in MNsure, provided that deleted text beginMNsuredeleted text endnew text begin the commissionernew text end must enter into a contract with the person or entity, as provided in section 13.05, subdivision 6 or 11, prior to disseminating data under this clause.

(3) according to a state or federal law specifically authorizing access to the data;

(4) with other state or federal agencies, only to the extent necessary to carry out the functions of MNsure, provided that deleted text beginMNsuredeleted text endnew text begin the commissionernew text end must enter into a data-sharing agreement with the agency prior to sharing data under this clause; and

(5) with a nongovernmental person or entity, only to the extent necessary to carry out the functions of MNsure, provided that deleted text beginMNsuredeleted text endnew text begin the commissionernew text end must enter a contract with the person or entity, as provided in section 13.05, subdivision 6 or 11, prior to disseminating data under this clause.

(c) Sharing or disseminating data outside of MNsure in a manner not authorized by this subdivision is prohibited. The list of authorized dissemination and sharing contained in this subdivision must be included in the Tennessen warning required by section 13.04, subdivision 2.

deleted text begin(d) Until July 1, 2014, state agencies must share data classified as private or nonpublic on individuals, employees, or employers participating in MNsure with MNsure, only to the extent such data are necessary to verify the identity of, determine the eligibility of, process premiums for, process enrollment of, or investigate fraud related to a MNsure participant. The agency must enter into a data-sharing agreement with MNsure prior to sharing any data under this paragraph.deleted text end

(1) a notice of rights related to the handling of genetic information, pursuant to section 13.386; and

(2) a notice of the records retention policy of MNsure, detailing the length of time MNsure will retain data on the individual and the manner in which it will be destroyed upon expiration of that time.

(b) All notices required by this subdivision, including the Tennessen warning, must be provided in an electronic format suitable for downloading or printing.

Subd. 7.

Summary data.

In addition to creation and disclosure of summary data derived from private data on individuals, as permitted by section 13.05, subdivision 7, deleted text beginMNsuredeleted text endnew text begin the commissionernew text end may create and disclose summary data derived from data classified as nonpublic under this section.

Subd. 8.

Access to data; audit trail.

(a) Only individuals with explicit authorization from the deleted text beginboarddeleted text endnew text begin commissionernew text end may enter, update, or access not public data collected, created, or maintained by MNsure. The ability of authorized individuals to enter, update, or access data must be limited through the use of role-based access that corresponds to the official duties or training level of the individual, and the statutory authorization that grants access for that purpose. All queries and responses, and all actions in which data are entered, updated, accessed, or shared or disseminated outside of MNsure, must be recorded in a data audit trail. Data contained in the audit trail are public, to the extent that the data are not otherwise classified by this section.

The deleted text beginboarddeleted text endnew text begin commissionernew text end shall immediately and permanently revoke the authorization of any individual determined to have willfully entered, updated, accessed, shared, or disseminated data in violation of this section, or any provision of chapter 13. If an individual is determined to have willfully gained access to data without explicit authorization from the deleted text beginboarddeleted text endnew text begin commissionernew text end, the deleted text beginboarddeleted text endnew text begin commissionernew text end shall forward the matter to the county attorney for prosecution.

(b) This subdivision shall not limit or affect the authority of the legislative auditor to access data needed to conduct audits, evaluations, or investigations of MNsure or the obligation of the deleted text beginboarddeleted text endnew text begin commissionernew text end and MNsure employees to comply with section 3.978, subdivision 2.

(c) This subdivision does not apply to actions taken by a MNsure participant to enter, update, or access data held by MNsure, if the participant is the subject of the data that is entered, updated, or accessed.

Subd. 9.

Sale of data prohibited.

deleted text beginMNsuredeleted text endnew text begin The commissionernew text end may not sell any data collected, created, or maintained by MNsure, regardless of its classification, for commercial or any other purposes.

Subd. 10.

Gun and firearm ownership.

deleted text beginMNsuredeleted text endnew text begin The commissionernew text end shall not collect information that indicates whether or not an individual owns a gun or has a firearm in the individual's home.

Sec. 10.

Minnesota Statutes 2014, section 62V.07, is amended to read:

62V.07 FUNDS.

deleted text begin(a)deleted text end The MNsure account is created in the new text beginstate government new text endspecial revenue fund of the state treasury. All funds received by MNsure shall be deposited in the account. deleted text beginFunds in the account are appropriated to MNsure for the operation of MNsure.deleted text end Notwithstanding section 11A.20, all investment income and all investment losses attributable to the investment of the MNsure account not currently needed, shall be credited to the MNsure account.

deleted text begin(b) The budget submitted to the legislature under section 16A.11 must include budget information for MNsure.deleted text end

Sec. 11.

Minnesota Statutes 2014, section 62V.08, is amended to read:

62V.08 REPORTS.

(a) deleted text beginMNsuredeleted text endnew text begin The commissionernew text end shall submit a report to the legislature by January 15, deleted text begin2015deleted text endnew text begin 2016new text end, and each January 15 thereafter, on: (1) the performance of MNsure operations; (2) meeting MNsure responsibilities; (3) an accounting of MNsure budget activities; (4) practices and procedures that have been implemented to ensure compliance with data practices laws, and a description of any violations of data practices laws or procedures; and (5) the effectiveness of the outreach and implementation activities of MNsure in reducing the rate of uninsurance.

(b) deleted text beginMNsuredeleted text endnew text begin The commissionernew text end must publish its administrative and operational costs on a Web site to educate consumers on those costs. The information published must include: (1) the amount of premiums and federal premium subsidies collected; (2) the amount and source of revenue received under section 62V.05, subdivision 1, paragraph (b), clause (3); (3) the amount and source of any other fees collected for purposes of supporting operations; and (4) any misuse of funds as identified in accordance with section 3.975. The Web site must be updated at least annually.

Sec. 12.

Minnesota Statutes 2014, section 62V.09, is amended to read:

62V.09 EXPIRATION AND SUNSET EXCLUSION.

Notwithstanding section 15.059, the deleted text beginboard and itsdeleted text end advisory committees new text beginestablished by the commissioner under this chapter new text endshall not expire, except as specified in section 62V.04, subdivision 13. deleted text beginThe board and its advisory committees are not subject to review or sunsetting under chapter 3D.deleted text end

Sec. 13.

Subd. 5.

Incentive program.

Beginning January 1, 2008, the commissioner shall establish an incentive program for deleted text beginorganizations and licensed insurance producers under chapter 60Kdeleted text endnew text begin community assistance partners defined in Minnesota Rules, part 7700.0020, subpart 7,new text end that directly identify and assist potential enrollees in filling out and submitting an application. For each applicant who is successfully enrolled in MinnesotaCaredeleted text begin,deleted text endnew text beginornew text end medical assistance, deleted text beginor general assistance medical care,deleted text end the commissionerdeleted text begin, within the available appropriation,deleted text end shall pay the deleted text beginorganization or licensed insurance producerdeleted text endnew text begincommunity assistance partner or insurance producer if the insurance producer has completed the certification training program administered by the commissioner of MNsure in accordance with section 62V.05, subdivision 3, paragraph (j), new text end a deleted text begin$25deleted text endnew text begin $70new text end application assistance bonus. deleted text beginThe organization or licensed insurance producer may provide an applicant a gift certificate or other incentive upon enrollment.deleted text end

Sec. 14. new text beginEXPANDED ACCESS TO THE SMALL BUSINESS HEALTH CARE TAX CREDIT.new text end

new text begin(a) The commissioner of commerce, in consultation with the commissioner of MNsure, shall develop a proposal to allow small employers the ability to receive the small business health care tax credit when the small employer pays the premiums on behalf of employees enrolled in either a qualified health plan offered through a small business health options program (SHOP) marketplace or a small group health plan offered outside of the small health options program marketplace within MNsure. To be eligible for the tax credit, the small employer must meet the requirements under the Affordable Care Act, except that employees may be enrolled in a small group health plan product offered outside of MNsure.new text end

new text begin(b) The commissioner of commerce shall seek all federal waivers and approvals necessary to implement this proposal. The commissioner shall submit a draft proposal to the legislature at least 30 days before submitting a final proposal to the federal government, and shall notify the legislature of any federal decision or action received regarding the proposal and submitted waiver.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end